The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1887-08-11
A RAILROADS. TROUBLES.
STATE OF AFFAIRS N THE c., H. 6 D.
STOCK DEAL.

ficnls of the Rond, and Christopher
Meyer and A. S. WinsIOw Succeed Them.
Comments of the New York Sun.
New YORK. Aug 1O.-At a meeting of
the stockholders of tho Cincinnati, Hamil-
ton & Dayton railroad, this afternoon,
Messrs. Ives and Strayer resigned their re-
| spective positions, and A. S. Winslow and
| Christopher Meyer were elected to fill their
places. A. S. Winslow, who has beon elected
president of the Cincinnati, Hamilton Sc
Dayton, has been for over forty years a
resident OF Cincinnati. He was for many
| years in the stove and hardware trade.
which he sold out to Mr. Burton. For about
twenty-five years he has been retired capi-
talist. He was one of the original organ
izers of the First National bank Of which he
| is still one Of the directors, and the present
| vice president He is a brother of James
Winslow, of the firm of Winslow, Tianier g.
Co., of New York, bankers and stock deal
! srs. Mr.. Winslow's home is on Mount
Auburn, Cincinnati.
Mr.. Meyer is the larg ost individual stock
holder of the c., H. &c D., and is very
wealthy New Yorker
Mr.. Meyer, who is one of the most con-
servative of men, stated that the Cincinnati
people are complaining that there appears
to be shortage or misappropriation of 3d.
900 in the funds of the road, and if the
gigantic discrepancy cannot be fully and
quickly explained that a criminal prose-
cution will result without delay. He then
offered a resolution, which was adopted,
that a committee consisting of Messrs.
Mryer, of this city, and Dexter and Waite,
of Cincinnati, be appointed to investigate
the alleged complications of the company's s
affairs
There was a rumor freely circulated on
Wall street to-day that Messrs. Sullivan &c
Cromwell had papers all prepared to make
an assignment for Henry S. Ives 81 Co., as
soon as they had resigned from the direc-
tory of the c., H. & D. This, however, they
have not done up to the present time.
The designations Of Ives and Stayner did
not have any noticeable effect upon the
stock market
The Sun, in speaking of the c., H. & D.
affair, says: "For one thing, it is impossi-
BILE as yet to tell how seriously Ives 81 Co.
have injured the c., H. & d. company by
issue of new securities Ives seems to have
had carte blanche to grind out securities
and they all went into some sort Of pool,
from which they seem to have been taken
and used according to the emergencies of
Ives & Co. How much of this business will
stand the light, it is impossible to predict.
In the case of the issue of c., H. g. D. pre-
ferred stock, Mr.. Robe rt Garrett has 81, 800, =
OOO par value Of it, for which the company
has never received dollar consideration.
"It is estimated by those cognizant of what
has been going on that the debts of Ives SC
Company or the Ives syndicate, OR whatever
the combination may bo, to the several roads
| he has tried to control is between S6, O0O, 600
| and S7O00,0OO In the case of c., II. 81 D.
alone, it is already known that about So, =
10000 of securities have been used without
consideration to the company, and some
money from the treasury besides. The
obligations of the firm for borrowed money
are about Sj,0O0OOO The greater part of
these are held in New York, the largest
being that of s2,0OO,OOO to William F. Nor
gan & Company.
Here is the way some of the big losses of
the firm have been made: They paid, ac-
cording to careful estimates, 81, 800, 900 moro
for the control of the c., H. &5 D. road than
they have parted with it to their creditors
for. In the case of the Terre Haute e. Indi-
annapolis road, Ives paid about $500, 900 more
than he has lost it for, while the losses on
branch lines and similar investments are
reckoned at fully another S50O,0O The
$500, 900 cash and $l,S00,00O of the c., H.
u D. preferred stock given to Bob Garrett
for his option on the Baltimore & Ohio
property was another clean item of loss.
Besides this, Il bank in Toledo was bought
for at least 500, 600 more than it is worth or
will bring, and about $i00,0O0 has been
spent in commissions for loans (50, ,0O0) for
instanca, to William r. Morgan e. Co., first
class laweTS fees, steam yacht, and sim
liar necessities to a real railroad magnate.
"The manner in which Ives bought yacht
and the Baltimore g. Ohio option shows how
he got stuck No ono who knows ANYTHING
about yachts could ever understand why
Ives paid w. T.. Starbuck SS7 900 for the
steam yacht Tillie. Now that it comes out
that he hypothecated her as soon as
he got her, the transaction is clear enough.
He got stuck in buying the control of the
Cincinnati, Hamilton 81 Dayton road in this
way. His pool bought in 19, 600 of the 80, 900
shares OF the common stock at from 1865 to
ljl He had to pay the higher prices for a
good deal Of it. The day before the election
Ives found that he could not vote the 10, 900
shares, because it had not been long enough
in his possession and that block Of l3, 200
shares would carry the election. He had no
resources but to buy that block, which he
did, paying l4s for it. That is he paid 10
per cent. down, 10 per cent. in about twenty
days later, and 27 per cent. thirty days after.
He apparently would buy anything that
anyone wouid give him time upon or that
he could borroY upon.
Ono of his most important roads, the Day.
ION q Ironton, has not yet been paid for
even by the usual process of getting hold of
the securities and hypothecating them to
pay the sellers Alfred SuIly and the Max
wells have claim on him for $500, 900 pur-
chase money on the Dayton 81 Ironton road.
ives is the third purchaser of the road who
has not been able to pay for it. The .ndica-
tions are that at the present rate the sellers
will soon get the price of the road and have
il too.
NEW NATIONAL pARTV